NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

SCORC

 

DATE TYPED:

03/08/03

 

HB

 

 

SHORT TITLE:

Public Peace, Health, Safety & Welfare

 

SB

CS/903/aSFl#1/aHJC

 

 

ANALYST:

Valenzuela

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

-         Report of the Legislative Finance Committee to the Forty-sixth Legislature, First Session, January 2003 for Fiscal Year 2003 – 2004, pp. 390 – 401.

-         Report to the Legislative Council from the Public Regulation Commission Subcommittee, in response to SENATE MEMORIAL 41, (2001 Legislative Session) December 2002.

 

This Fiscal Impact Report excerpts directly from the above mentioned reports.

 

SUMMARY

 

     Synopsis of HJC Amendment

 

The House Judiciary Committee (HJC) amendment makes two substantive changes. The first revision further clarifies that the PRC regulatory action should balance the interests of the public, consumers and investors. The second revision clarifies that consultation between Commissioners’ staff and a party to a case may occur pursuant to the PRC rulemaking authority.

 

      Synopsis of Senate Floor Amendment

 

The Senate Floor Amendment # 1 simply cleans up the language. The first deletion eliminates redundant wording, “fulfill its responsibility to”, that requires the PRC to balance consumer versus utility interests in its regulatory actions. The second and third items clarify that at least one Commissioner shall be present for oral arguments on a case before a hearing examiner.

 

     Synopsis of Original Bill

 

The Senate Corporations and Transportation Committee (SCORC) substitute for Senate Bill 903 proposes three major amendments to the Public Regulation Commission (PRC) enabling act to provide more communication among all entities involved in rulemaking and adjudicatory hearings. A detail by section is provided below:

 

Section 1. Requires the staff of the Utility Division to testify for docketed cases before the Commission on how to balance the interests of consumer and investors. Prohibits ex-parte communication with any Commissioner, except as allowed under Section 8-8-17, which has been amended in this bill to allow for communication with Commissioner advisory staff.

 

Section 2. Adds a new section that requires at least one Commissioner be present at oral arguments before a hearing examiner, if requested by a party to the proceeding.

 

Section 3. Adds a new section to the Ex-parte Communication criteria that allows communication between a party to a proceeding and the Commission’s advisory staff.

 

     Significant Issues

 

The Public Regulation Commission (PRC) has a complex mix of policy-making, regulatory, judicial and administrative responsibilities for diverse industries essential to the economic health and future of New Mexico. In 2001, Senate Joint Memorial 41 passed the Legislature and requested the Legislative Council designate an interim committee to examine the organization, financing and performance of the Public Regulation Commission. The Legislative Council appointed the PRC subcommittee to meet during the 2001 and 2002 interim to address these issues.

 

The Public Regulation Commission (PRC) was created through a merger of the elected State Corporation Commission and the appointed Public Utility Commission. Despite this significant change, the public policy and regulatory issues involved in such a merger were never fully debated by the Legislature or the public. The subcommittee evaluated the ex-parte statute and recommended that no changes be made. The specific recommendation is provided below.

 

Ex-Parte Laws. The subcommittee examined the dual responsibilities of the PRC commissioners to make policy and serve a judicial role. The subcommittee recommends that ex-parte communications be addressed through training for the PRC commissioners, staff and intervenors to assure all parties are informed on acceptable practices. Ex-parte issues should also be addressed through more effective administrative policies and procedures. The PRC, regulated industries and consumer representatives did not make any specific recommendations for statutory changes to the ex-parte laws. The subcommittee does not recommend statutory changes at this time.

 

FISCAL IMPLICATIONS

 

The SCORC substitute does not carry an appropriation. Its enactment would not have a fiscal impact on the PRC.

 

 

ADMINISTRATIVE IMPLICATIONS

 

Increased communication between parties could improve processing of cases.

 

Several regulated utilities have testified to the LFC and other legislative committees about the length of time that it takes the PRC to act on and complete docketed cases. The LFC has recommended several performance measures with targets to focus attention on this issue of timeliness. These measures are shown below:

 

-         Percent reduction in the number of water utility rate cases on the PRC docket: 25%

-         Percent reduction in the number of docketed cases before the PRC: 25%

 

Improving the number of cases going through the PRC could actually make available more resources for larger more complex cases.

 

MFV/sb/ls:njw